An EPQ model for three-layer supply chain with partial backordering and disruption: Triangular dense fuzzy lock set approach

Abstract

This article deals with three-echelon supply chain (SC) network involving flow of raw materials with imperfect quality, the manufacturer and multiple retailers under the effect of learning experiences in fuzzy decision-making process. Existing literature explores the SC model under full backordering and disruption. Thus, in this study we first develop a production-inventory control problem accompanied with partial backlogging and random disruptions. Any batch received from the supplier is inspected by the manufacturer and if any of them are found to be flawed then all the goods in the inspected batch are rejected. However, we present a case study for problem definition and to comprehend the model into practical applicability. To minimize the aggregate cost of the SC we have utilized the Triangular dense fuzzy lock set for controlling the cost vector of the proposed objective function of the model. Utilizing new defuzzification method and applying the proper keys, chosen by the decision maker, it is possible to minimize the average system cost exclusively. Finally, graphical illustrations and sensitivity analysis are made to justify the model.